BRIDGETOWN, Barbados - According to the Minister of Finance, the Foreign Account Tax Compliance Act (FATCA) is being viewed as a challenge that must be overcome.
The main objective of FATCA is to ensure that the United States’ Internal Revenue Service (IRS) can identify and collect taxes from US taxpayers abroad. It applies to commercial banks and financial institutions with American clients or assets. Under FATCA, financial institutions will have to report all of their US clients and assets. Failure of the institutions to comply will result in blowback from the United States in the form of a 30 per cent withholding tax.